Direct Tax Code from April 1,2012

In the DTC Bill,which was introduced in Parliament last year,the annual I-T exemption limit is proposed at Rs 2 lakh,compared to Rs 1.6 lakh at present.

Under the Bill,the government seeks to widen tax slabs to levy 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh,20 per cent on Rs 5-10 lakh and 30 per cent above Rs 10 lakh.

Currently,income up to Rs 1.6 lakh per annum is exempt from tax for individuals. For women and senior citizens,the limit is 1.9 lakh and 2.4 lakh,respectively.

The tax is levied at a 10 per cent rate on income between Rs 1.6 lakh and Rs 5 lakh,20 per cent on Rs 5-8 lakh and 30 per cent above Rs 8 lakh.